Gold prices reached an all-time high after the Fed interest rate decision. It has been a very bright year for the yellow metal. Furthermore, there are signs that it will be even brighter. An analyst from Bank of America summarizes the path to $3,000. According to the analyst, the rally of gold will not end soon.

Gold is on its way to 3,000 dollars, and not in a very distant time!

BofA analyst Jason Fairclough notes that gold has recorded a 25% gain this year with a new ATH of $2,600. Furthermore, he says that low Fed interest rates could push the price of gold up to $3,000 by 2025. It is worth mentioning that BofA analysts expressed bullish sentiments about gold, stating that it is among our most preferred commodities due to potential participation of Chinese retail buyers and Western investors in interest rate cuts pushing up the yellow metal.

Gold prices are rising as the markets digest the Fed's interest rate cut

As you follow from Kriptokoin.com, gold has rebounded after reaching a record level of $2,600.29 before the decline. Gold is showing resistance after the Fed's surprising decision to cut interest rates by 50 basis points. This increased sensitivity towards the precious metal. The Fed's larger-than-expected 50 basis point interest rate cut has renewed interest in gold. The Fed has lowered interest rates to the range of 4.75% - 5%. This shows its determination to keep unemployment low while reducing inflation pressures. Fed Chairman Jerome Powell pointed to stable employment indicators such as a 4.2% unemployment rate. In this context, he emphasized that despite this regulation, the US economy continues to remain strong.

This rate cut supported the demand for gold in dollar terms by weakening the US dollar. Gold bars became more attractive compared to yield-generating other assets. Therefore, it typically saw an increase in demand in a low interest rate environment. Investors are expecting another rate cut in November. Therefore, if economic data continues to weaken, gold is likely to provide further benefits.

Despite market fluctuations, treasury yields remain stable.

Following the Fed's decision, yields on US Treasury bonds remained relatively stable. Investors are weighing the effects of this monetary change and waiting for more data. Despite fluctuations, the Fed's forward guidance shows that cuts will continue until 2024 and an additional 50 basis point cut is anticipated. This dovish outlook may continue to increase demand for gold as a safe haven as Treasury yields remain low.

Geopolitical tensions and softening data could push gold higher!

Geopolitical risks in the Middle East continue to be a significant factor affecting gold prices. The renewed tension in Lebanon, where explosives belonging to Hezbollah exploded again on Wednesday, is causing anxiety in global markets. This, in turn, increases the attractiveness of gold as a hedge against geopolitical uncertainty. Meanwhile, upcoming US jobless claims data, especially if the numbers reflect a weakening labor market, could serve as a catalyst for further price movements.

Gold Market Forecast

Market analyst James Hyerczyk is looking at the technical picture of gold. Technical analysis reveals that 2,531.77 dollars is an important support. It also shows that the 50-day moving average is at 2,473.18 dollars. The next key resistance levels are at 2,649.43 dollars and 2,660.90 dollars. It is possible for bullish traders to target these levels.

The interest rate cut by the Federal Reserve has raised gold prices. Expectations are for gold prices to continue rising in the short term. Thus, the key resistance levels at $2,649.43 and $2,660.90 will be the focus of investors. A weakening dollar and expectations of a new interest rate cut create a favorable environment for gold bulls. Additionally, any escalation in geopolitical tensions or further signs of economic weakness could push prices towards the $2,700 level. Investors will be watching important economic reports such as initial jobless claims and housing sales data, as they could potentially impact short-term gold movements.

To be instantly informed of the latest developments, follow us on * Twitter, * Facebook, and Instagram, and join our * Telegram and YouTube channels!